“Creeping Socialism”

As of tomorrow, a few more HRC provisions kick in – including the requirement that 80 percent of insurance premiums be spent on health care. This will lead to two alternatives – lower premiums, or stimulative insurance spending on actual health care. How effective it will be I can’t say as I know nothing about the enforcement mechanism, and I’m sure that Republicans are going to try to starve it for funds. But insurance companies which dedicate more than 20 percent to dividends, salaries, and overhead will be in violation of law.

Given that the recession and bailout money have brought insurance companies record profits over the past couple of years, there should be plenty of money to invest in medical infrastructure, that that could mean significant hiring.

Also kicking in are the 50 percent pharmaceutical discounts for seniors caught in the infamous “donut hole” and that will sbe quite visible and very much felt by those on fixed incomes. Some senior advocacy group is already airing radio ads, and a number of people have been stretching out what they have to make it to Jan. 1 when unfortunately most pharmacies will be closed. But Monday isn’t too far away.

Premiums will go higher. Actual services will diminish. It’s like they don’t want us to expect anything for our money. We’re only paying for coverage. But all ‘coverage’ means is compliance with the law. Medical services will have to come out of our own pockets. American corporations have learned they don’t really have to give us anything. We are going to pay anyway. Look at the bad deals the working person gets in every small necessity. Insurance, cell phones, home phones, vehicle registrations, License fees, mortgage rates. The working class is getting exploited shamelessly. The big-businesses get profit, we get debt. Why do we live this way?

If I want a health insurance company that spends 40% on advertising, 30% on lobbying, and 20% on executive salaries, what business is it of the damn government to come between me and my fellow man in a free transaction, entered into with liberty and equality?

Or are doctors and nurses supposed to be more “important” to my health than ad agency creative types and lobbyists? If that’s the case, why don’t I ever see that on the tv news?

“…including the requirement that 80 percent of insurance premiums be spent on health care.”

And yet my premium increased 16% for 2011, starting Jan 1 (over the 2010 rate) just like it did last year and the year before that. That’s an increase of 48% in 3 yrs, which is much faster than inflation and cost of living increases… and I haven’t even been sick or injured!

I’ll assume, arguendo that it’s true, but by exactly what mechanism have the recession and bailout brought record profits to insurance companies?

Well, if you believe Krugman it has to do with the stock values pumped up by the “too big to fail” policies. If you know the government isn’t going to let companies in a particular industry fail, then they are safe bets for investments. Insurance companies, like banks, make their money by investment. One of the explanations my fellow lawyers give me as to why it is so hard for me to get the payments out of insurance companies once I settle is that they want to hold onto the money as long as possible to make money off it. As the argument goes, premiums don’t even come close to covering the costs. It’s all about the investments. Even if everyone else has been suffering, the financial/securities markets have done quite well as companies have made record profits due to increased productivity following massive layoffs.

In short, if your income is based on securities, you’ve probably done quite well.

I’m far from a financial expert, but I’m not at all sure health insurance companies operate on the traditional financial model of say, a life insurance company.

Just a quick glance at their charts at Yahoo Finance shows, for instance, that WellPoint (the largest private health insurer — I think) had $65 b in revenue in 2009 and held $18 b in long-term assets. That’s a bit over a quarter of its annual revenue, if my math is right.

In contrast, MetLife — supposedly the largest U.S. life insurer — had $42 b in revenue but held $322 b in long-term assets.

And that just stands to reason. You hope to never need your fire or auto insurance, but pretty much everyone over 40 is at least visiting the doctor once or twice a year (if they can afford it).

Insurance companies are blood suckers.
Google california top funded recipients recovery.gov
Since they are giving away the U.S. Treasury, why not make Medical School free? That would provide jobs and we could have doctors with reasonable prices.